USD PRICE OUTLOOK: US DOLLAR AIMING HIGHER INTO MONTH END BUT GIVES BACK SOME GAINS AFTER 2Q GDP REPORTUSD value motion on the of
USD PRICE OUTLOOK: US DOLLAR AIMING HIGHER INTO MONTH END BUT GIVES BACK SOME GAINS AFTER 2Q GDP REPORT
- USD value motion on the offensive headed into month-end however fading after US GDP knowledge
- 2Q US GDP report printed a jaw-dropping 32.9% collapse in financial exercise
- US Greenback is down over 4% for July and the latest bearish pattern might proceed
The broader US Greenback has declined effectively over 4% all through July judging by efficiency of the DXY Index, however the common basket of main forex pairs was making an attempt to claw again some draw back early throughout Thursday’s buying and selling session with month-end upon us. A brief-lived aid bounce within the Dollar appears to be like like it’s reverting again decrease as USD value motion reacts negatively to 2Q-2020 US GDP knowledge that simply crossed the wires.
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2Q-2020 US GDP REPORT PRINTS HISTORIC COLLAPSE IN ECONOMIC ACTIVITY DUE TO COVID-19
Chart Supply: DailyFX Financial Calendar
Amid the coronavirus lockdown that paralyzed the worldwide financial system for a number of weeks in the course of the second quarter, the USA simply reported a 32.9% contraction in quarterly GDP development, although the staggering collapse was largely anticipated.
EUR/USD PRICE CHART: 1-MINUTE TIME FRAME (30 JULY 2020 INTRADAY)
EUR/USD value motion has slid since piercing the 1.1800-price degree within the wake of yesterday’s FOMC choice. That mentioned, spot EUR/USD simply turned constructive on the day following the discharge of US GDP knowledge and should look to proceed its latest bullish pattern as US Greenback weak spot lingers.
| Change in | Longs | Shorts | OI |
| Every day | 0% | 4% | 3% |
| Weekly | 15% | -3% | 3% |
GBP/USD PRICE CHART: 1-MINUTE TIME FRAME (30 JULY 2020 INTRADAY)
GBP/USD value motion had an analogous response to 2Q US GDP knowledge with the Pound-Greenback advancing instantly after the report. The cable is now buying and selling close to session highs with US Greenback draw back most notable in opposition to its Pound Sterling peer.
| Change in | Longs | Shorts | OI |
| Every day | -4% | 2% | 0% |
| Weekly | 7% | 7% | 7% |
USD/JPY PRICE CHART: 1-MINUTE TIME FRAME (30 JULY 2020 INTRADAY)
Likewise, the Greenback-Yen slipped to intraday lows as market contributors digested US GDP knowledge for 2Q-2020. Spot USD/JPY value motion however trades modestly greater on steadiness for Thursday on the time of writing. Along with merchants’ reactions to yesterday’s FOMC assertion and as we speak’s GDP knowledge probably weighing on the US Greenback, month-end rebalancing might be one other issue in addition to S&P 500 earnings and monetary stimulus talks.
Preserve Studying: US Greenback Paces Large Drop for July as Shopper Confidence Wanes
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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